Councils bid to lift rates above set limit

The Cobar Shire Council has signalled it could apply for a rate increase up to 10 per cent above the approved limit.

In a letter to the Independent Pricing and Regulatory Tribunal (IPART), the council says it might apply for a one-off rate variation for the 2012-'13 financial year.

Last month, the council endorsed a plan to bring its budget, which is in a deficit of almost $2 million, back to surplus, but a rate increase was not included in the plan.

The Member of Barwon, Kevin Humphries, has written to the council, saying that its rates and charges are up to 50 per cent lower than other councils of a similar size.

General manager Gary Woodman says the application to the IPART was made "just in case" and the council has not voted on the proposal.

Meanwhile, the Gilgandra Shire Mayor says the New South Wales Government needs to provide more infrastructure funding if it is going to ban councils increasing rates above the set limit.

Councillor Ken Gordon says the council has applied for a 3.2 per cent increase in addition to the 3.6 per cent rate peg that has been approved by the IPART.

The IPART will decide in June which councils will be allowed to introduce a special rate variation but acting Local Government Minister Brad Hazzard says the Government will overrule any approvals.

Cr Gordon says the process should remain independent.

"I believe the process of moving it across to IPART is the most appropriate way to do it," he said.

"The State Government over a number of years has cost shifted across to local government and shut down a number of different grant programs that were available to local government.

"I believe in doing so that they've passed the burden and responsibility onto councils."

He says if the council cannot get more money through rate increases, the Government should pay.

"It's allowed us an independent regulatory authority that can pass judgment without any of the politics involved and I'd be very disappointed if the State Government chose now to start interfering with that unless they've got a process in place where they can provide monies to local government to replace the potential rate increase income where they start paying for the roads and the bridges," he said.